Business Finance Basics

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MBDA

There are three basic reports important to your business.

Income or Profit and Loss Statement

Cash Flow Statement

Balance Sheet

An income or Profit and Loss Statement shows where and how money goes in and out of a company for a period of time. Monthly, quarterly and annual Profit and Loss Statements show the financial strength of a company.

The Cash Flow Statement is one of the most useful financial management tools because it shows you exactly how cash is flowing in and out of a business.

The Cash Flow Statement is a guide for business making business decisions such as adding employees or planning major purchases.

A Balance Sheet is a financial snapshot of your company highlighting all major assets and liabilities.